ARM Holdings (LON:ARM), designers of CPU cores for almost every mobile phone made today, is celebrating tremendous first-half results. It's also looking to the future, with a big list of new licensees. Not bad for a company that rose from the ashes of Acorn, the BBC-Micro maker .
- On the one hand, let's allow ourselves a moment of understated, British pride.
- On The Other Hand, beware of Intel, which is refocussing on low power CPUs.
Plus, today's skateboarding duck: Common British Owls: A Guide...
Aunty Beeb reports:
Pre-tax profit rose by 14% to £33.8m in the second quarter...from the same period last year. ... "Arm enters the second half of 2011 with a healthy order backlog and a robust opportunity pipeline." ... The company said it had signed 29 new licenses for processors in the second quarter.
...Arm's revenue increased by 27% to $190.2m...the company makes most of its sales in dollars. ... Chip designs from Arm are used in hardware made by companies like Apple...Qualcomm, Samsung, Texas Instruments, Freescale, and Nvidia.
Bill Ray adds:
More than a billion chips, based on licensed ARM designs, shipped during the second quarter ... [pushing] pre-tax profits up to £54.2m...well above analysts' estimates of £45.3m. But the company is still cautious...with its own predictions for the whole of 2011 unchanged.
ARM chips form the heart of just about every telephone...from the latest iPhone to the bargain-basement handsets. ... The company also has aspirations in the server business, not to mention powering...Chrome OS devices, which are expected to multiply. ... ARM doesn't make chips, it only designs cores. ... The A4 chip, inside the iPhone, shares a recent ARM core with Qualcomm's Snapdragon, so...ARM makes money from both of them.
Stewart Meagher looks to the future:
The Cambridge-based company also said it had signed [new] licensees across a broad range of target markets, including nine for the Cortex A series and 12 for the Cortex N series chips...[and] that 1.1 billion mobile phones using ARM processors had been shipped alongside 0.8 billion built into other gadgets.
The company said it...expected to deliver more strong performance in license revenues. ...ARM says that its relationship with Microsoft is growing in strength with the software giant currently working on Windows 8 for ARM...as well as demonstrating Internet Explorer 10 running on ARM-designed chips.
And Alan Oscroft waves the flag:
So the UK is an economic has-been, falling behind the world in tough economic times? ... Think again. ...ARM Holdings is a world leader. ... The more desirable mobile phones and tablet computers might come...from Apple...or Android...but it's ARM's processor designs that power them. ...[W]hichever comes out tops in the ongoing battle for next generation supremacy...ARM wins.
Underlying pre-tax profit for the second quarter...was up a stonking 25%. ... What we're seeing is both strong income from royalties, and good revenues from licensing deals. ...[T]hat's good for both the shorter and longer term outlook for the company.
[But] the far-off giant that is Intel is not a slumbering one, and [it's] being drawn ever closer to the mobile computing market. So although ARM...looks hard to dislodge, Intel will have competing designs that will have to be reckoned with.
Meanwhile, Sharif Sakr waxes anthropomorphic:
Today's Skateboarding Duck...
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Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. His writing has previously won American Society of Business Publication Editors and Jesse H. Neal awards. A cross-functional IT geek since 1985, you can also read Richi's full profile and disclosure of his industry affiliations.